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Why did the Telia-Telenor merger fail?
Stockholm University, Faculty of Social Sciences, Stockholm Business School, Management & Organisation.
Stockholm University, Faculty of Social Sciences, Stockholm Business School.
Stockholm University, Faculty of Social Sciences, Stockholm Business School.
2004 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 13, no 5, 573-594 p.Article in journal (Refereed) Published
Abstract [en]

The purpose of this article is to examine through a case study of the merger of Telia–Telenor why firms from apparently similar national cultures can fail to form a co-operative venture. Telia and Telenor were the largest telecom operators in Sweden and Norway, respectively. Both were government-owned with a strong monopoly over their respective national markets for a long time. Despite perceived similarities between the negotiating parties in national culture, corporate practice, and language, the negotiation eventually went askew and the ongoing merger ended in December 1999 after only two months in existence. We describe the process of the Telia–Telenor merger negotiation and analyze it from a cross-cultural management perspective. Our major finding is that historical sentiments, feelings and emotions, if not handled well, can cause fatal damage to cross-cultural business ventures.

Place, publisher, year, edition, pages
2004. Vol. 13, no 5, 573-594 p.
Keyword [en]
Telia, Telenor, Merger negotiation, History, Culture
National Category
Business Administration
Research subject
Business Administration
URN: urn:nbn:se:su:diva-56390DOI: 10.1016/j.ibusrev.2004.06.002OAI: diva2:410926

Corrigendum: doi:10.1016/j.ibusrev.2004.09.006

The authors intend to announce the following: Norway had been a province of Denmark but not Sweden and the Norwegian Constitution was adopted on May 17, 1814. Detailed description of the Sweden–Norway Union (1814–1905) can be sourced via a recent project conducted jointly by Swedish and Norwegian researchers

Available from: 2011-04-15 Created: 2011-04-15 Last updated: 2015-09-22Bibliographically approved

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